[Click eStock] "SPC Samlip to Deliver 2Q Results Exceeding Expectations... Impact of New Product Launch"

[Asia Economy Reporter Myunghwan Lee] Hana Financial Investment announced on the 30th that it maintains a buy rating and a target price of 100,000 KRW for SPC Samlip. The company also forecasted that SPC Samlip will deliver earnings exceeding market expectations in the second quarter.

Hana Financial Investment projected SPC Samlip's consolidated sales and operating profit for this year to be 805.2 billion KRW and 21 billion KRW, respectively. These figures represent increases of 12.6% and 44.5% compared to the same period last year, surpassing market expectations.

The improvement in performance was attributed to the strong bakery segment and the recovery of traffic at rest areas. Bakery sales are expected to increase by 25% year-on-year due to the strong sales of the new product 'Pokemon Bread' and the effect of price hikes. Operating profit is also estimated to improve significantly compared to the previous year.

Food sales are also expected to grow by 10% year-on-year due to price increases by the subsidiary 'Milda One.' However, profitability is anticipated to slightly decline compared to the same period last year due to increased cost burdens. Sales at rest areas are estimated to increase by 30% year-on-year due to the base effect from last year and rapid traffic recovery.

SPC Samlip's consolidated sales and operating profit for this year are estimated to increase by 10% and 33.9%, respectively, compared to the previous year. Hana Financial Investment noted that SPC Samlip inevitably suffered adverse effects from COVID-19 due to its business structure, especially with significant losses in the rest area business. However, with recent rapid traffic recovery, it is expected to break even on an annual basis. The core bakery business is also expected to see meaningful performance improvements through the second half of the year as the effects of new product launches are fully reflected.

Sim Eun-joo, a researcher at Hana Financial Investment, analyzed, "The recent stock price adjustment has eased valuation burdens," adding, "Considering the expansion of earnings momentum, buying at a low price is deemed effective."